4 ms·

I didn't twist it to fit my beliefs: i presented a scenario that is actually more expensive than what it would be in reality and showed how even that would not

by joh6nn 8y ago

I didn't twist it to fit my beliefs: i presented a scenario that is actually more expensive than what it would be in reality and showed how even that would not be a substantial increase in cost, even if it was paid for exclusively by increasing the price of products sold. A $1M/mo additional increase in supply costs would be less than .1% of their revenue. It just manages to be .1% at $10M/mo. Given that the $1.2B/yr payroll cost I cited above is actually only 4.5% of Kraft's yearly revenue (I rounded up to 5% for simplicity), the additional supply chain cost you present would actually be covered by the 5% price increase I initially mentioned. It would in fact be covered by that 5% even at $10M/mo.

ttoinou 8y ago
But this company buys products from others company so ultimately an increase in wages will feed through almost all inputs, hence output. Your calculation is wrong
- joh6nn 8y ago
  Yes, you already said that. You asked what would happen if their supply chain raised payroll (and therefore prices) by $1M/mo. And I answered that question.
  - ttoinou 8y ago
    No my question is setting the minimum wage to 1 million USD per month (per employee obviously). Of course 1 million USD / month more in cost is nothing
    - joh6nn 8y ago
      Obviously that wage isn't sustainable. The good news is that the majority of people discussing wage increases are making good-faith arguments about sustainable increases, and are not asking for a (ridiculous) $12M/yr minimum wage. I'm not sure I understand what point you're trying to make by presenting a hypothetical wage that's 5 orders of magnitude larger than the situation being discussed.
      - ttoinou 8y ago
        That you cannot create money out of thin air, that you are only trying to force increasing the relative value of labor vs. capital / land / moral hazard etc. If your increase in minimum wage follows productivity then what's the point ? It's like voting for no child labour laws after most of the children are not working anymore

by joh6nn 8y ago

ttoinou 8y ago

But this company buys products from others company so ultimately an increase in wages will feed through almost all inputs, hence output. Your calculation is wrong

joh6nn 8y ago
Yes, you already said that. You asked what would happen if their supply chain raised payroll (and therefore prices) by $1M/mo. And I answered that question.
- ttoinou 8y ago
  No my question is setting the minimum wage to 1 million USD per month (per employee obviously). Of course 1 million USD / month more in cost is nothing
  - joh6nn 8y ago
    Obviously that wage isn't sustainable. The good news is that the majority of people discussing wage increases are making good-faith arguments about sustainable increases, and are not asking for a (ridiculous) $12M/yr minimum wage. I'm not sure I understand what point you're trying to make by presenting a hypothetical wage that's 5 orders of magnitude larger than the situation being discussed.
    - ttoinou 8y ago
      That you cannot create money out of thin air, that you are only trying to force increasing the relative value of labor vs. capital / land / moral hazard etc. If your increase in minimum wage follows productivity then what's the point ? It's like voting for no child labour laws after most of the children are not working anymore